WildBrain (WILD) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 began with strong performance, driven by core brands and high-growth areas in global licensing, content creation, and audience engagement.

• Global licensing led growth, with a 29% year-over-year increase, fueled by Peanuts, Strawberry Shortcake, and Teletubbies across multiple categories and territories.

• The company renewed its multi-year Peanuts content partnership with Apple TV through 2030, reinforcing long-term franchise value and including new content commitments.

• Ceased operations of WildBrain Television in October to focus on higher-margin brand, content, and licensing opportunities.

• Asset review process continues, aiming to sharpen strategic focus and enhance balance sheet flexibility.

Financial highlights

• Q1 2026 revenue was CAD 126 million (USD 125.5 million), up 13% year-over-year; excluding television, revenue was CAD 121 million (USD 120.8 million), up 16%.

• Global licensing revenue reached CAD 81 million (USD 81.1 million), up 29% year-over-year.

• Content creation and audience engagement revenue was CAD 40 million (USD 39.8 million), down 3% due to lower content distribution revenue.

• Gross margin improved to 51% from 47% last year, driven by a shift toward licensing.

• Adjusted EBITDA was CAD 21 million (USD 20.9 million), up 37%; excluding television, adjusted EBITDA was CAD 17 million (USD 17.4 million), up 53%.

• Net loss was CAD 33 million (USD 32.6 million), compared to a net loss of CAD 11 million (USD 10.6 million) in the prior year.

• Free cash flow was negative CAD 11 million (USD 10.7 million), compared to positive CAD 5 million (USD 4.8 million) in Q1 2025.

• Leverage at quarter-end was 4.96x, within covenant compliance.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: core business (excluding television) revenue and adjusted EBITDA expected to grow 15%-20%.

• Including television, full-year revenue expected at CAD 560–590 million (USD 560–590 million) and adjusted EBITDA at CAD 80–85 million (USD 80–85 million).

• Free cash flow expected to decline year-over-year due to timing variances and the cessation of television operations.

• Licensing momentum expected to continue, with investments in franchise marketing and SG&A creating future tailwinds.

• Media Solutions and FAST channels anticipated to drive future growth, though monetization currently lags engagement.